"We can govern the quality of Blu-ray, we can govern the quality of DVD for example, but even Netflix or say LOVEFiLM for example, can't govern the quality of their service delivery because it then depends on someone else [Internet Service Provider]," he said.

However, Kaye did attribute the downturn of physical media sales to the growing popularity of streaming services, among other factors.

"It was the perfect storm you know, right? When the recession started perhaps it hit harder and earlier in the US and then started spreading elsewhere," he added.

"It was the same time that you had a number of alternative channels of distribution begin to evolve and the consumer said, 'Wow that's pretty convenient, they're cheaper, in some cases they're really convenient and that's the way I'm going to go'."

The executive pointed out that Fox's physical sales began to pick up around mid-2011, and predicted that there will be "growth" in the sector during 2012.